National Express investor unveils plan to sell nearly £120m worth of shares in transport group

National Express could come under pressure on Thursday after one of its biggest investors decided to halve its stake by selling nearly £120m worth of shares.

The transport group closed 4.9p higher at 230p on Wednesday. But after the market closed, Elliott Advisors announced it planned to sell around 50.59m shares - a 9.9% stake - in a secondary placing. At the current market price that would bring in around £116m for the US hedge fund.

Elliott said the sale was part of a desire to diversify its portfolio and invest in new opportunities. Following the sale Elliott will retain a 9.9% stake, and has agreed not to sell any further shares for at least 90 days from the placing. It said:

National Express still remains one of Elliott's most important investments. Elliott is a strong believer in National Express' management team and its strategy for continue outperformance and has confidence in the company's outlook and future prospects.

Last week the group reported a 9% drop in profits after the removal of a government subsidy saw its coaches carry 1m fewer elderly passengers. Its shares have been steadily recovering since it issued a profit warning in October.